Commission approves dumping duties on China, Vietnam shoes

The European Commission formally approved on Thursday anti-dumping duties for leather shoes imported from China and Vietnam, a plan that has generated protests by both Asian countries and split the EU.
One of the world's biggest shoemakers, Timberland Co, which has factories in Asia, said the measures would reduce its operating profit by about $10 million this year and it might raise the price of its shoes sold in Europe.
Brussels says it has evidence of state intervention helping shoemakers in China and Vietnam and it will impose duties of 16.8 percent on shoes from Vietnam and 19.4 percent from China to be phased in over five months from April 7.
Sports shoes and children's footwear will be exempted.
China and Vietnam have denied their shoe exports are being dumped in the European Union and China has said it might consider a complaint to the World Trade Organisation, which regulates global trade.
"The European Commission has today adopted proposals by European Trade Commissioner Peter Mandelson to impose a provisional anti-dumping duty on leather shoes from China and Vietnam," it said in a statement.
Mandelson on Thursday reiterated he wanted to work with China and Vietnam "to address the questions of competitive distortions", the statement said.
The case has also split the 25-member EU. Some countries with shoe industries of their own, led by Italy, pushed for higher duties than those planned by Brussels.
But other countries that favour free trade and with big retail lobbies, especially those in Scandinavia, say no anti-dumping measures are needed.
In a vote on the measures last week, 11 EU countries abstained, nine or 10 voted against and three voted in favour. Abstentions are considered votes in favour under the rules of an EU anti-dumping committee.
Although the Commission does not need support from EU states for its provisional anti-dumping duties, it will need backing when it comes to making the duties definitive in October.
Italy has said it will continue its campaign to toughen the measures, possibly by removing the exemption for children's shoes which Rome says is too broad and would cover many shoes worn by women.
Representatives of Europe's retail sector say they are concerned that producers in Europe of other items facing tough competition from Asia - such as ceramics and furniture - might also push for anti-dumping measures.